Inflation hits the GSM handsets?

ATT Wireless & Cingular raised prices of their handsets by about $50 over last one month or so, according to an analyst at RBC Dain. AT&T raised prices on about 8 handsets, mostly Nokia, while Cingular raised prices of 5 models, two of them being Nokia. In comparison, Verizon Wireless lowered pricing by $20-50 on five models.

According to this analyst, since AT&T had a good month in April, the company is raising handset prices to temper growth a wee bit and not lose gobs of money. Given that AT&T has been losing subscribers faster than Britney has been losing fans, it is one of those bone headed moves which make you wonder. Why not give customers better phones, and lure them into two year contracts.

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I think when this quarter ends, we will see the following handset market share trend: Nokia (down, and ugly phones might have something to do with that); Samsung in #2 spot (sales up marginally), Motorola #3 with sales showing signs of moving up, if not profits; and LG & SE tied nicely for the 4th and 5th spots.